Property Tax Procedure
Overview of the Procedures Leading to a Tax Deed Sale
Function of the property appraiser.
Each county property appraiser prepares a separate tax assessment roll each year, which includes the just value of each unique parcel and applicable exemptions. F.A.C 12D-8.001. The property appraiser is required to complete valuation and prepare the assessment roll not later than July 1st of each year, subject to extension by the Executive Director of the Florida Department of Revenue. F.A.C. 12D-8.002. The assessment roll is to include ?the owner or fiduciary responsible for payment of taxes on the property, his or her address including postal zip code and an indication of the fiduciary capacity . . . as appropriate." F.A.C. 12D-8.007(2)(a).
The property appraiser obtains the name and mailing address from the deed of record, which by statute sets forth the name and post office (mailing) address for the grantee (section 695.26(1)(f), Fla. Stat. (2006) and the property appraiser's property control number (section 689.02(2), Fla. Stat. (2006)). In addition, the Florida Department of Revenue form DR-501, original application for homestead, includes a space for listing a mailing address. The physical address for each parcel is most likely determined by the county or municipal code. For example, in the City of West Palm Beach, it is the construction services department (the building official) who assigns the physical address to each parcel.
Once the assessment roll has been completed, the property appraiser certifies the roll and provides the original to the tax collector. F.A.C. 12D-8.016 and F.A.C. 12D-8.017. The Florida Department of Revenue reviews the assessment roll within 90 days of receipt. F.A.C. 12D-8.020. The property appraiser may submit a Certificate of Correction for the Tax Roll to correct errors, including an "[e]rroneous listing of ownershipof property."F.A.C.12D-8.021(a)(22).
Function of the tax collector.
The tax collector is to mail a notice that the tax roll is open for collection to each taxpayer appearing on the tax roll. F.A.C. 12D-13.037. Section 197.3635, Fla. Stat. (2006) prescribes a form of notice of ad valorem taxes and non ad valorem assessments which includes notification that failure to pay will result in issuance of a tax certificate. If there are unpaid back taxes on the property, notice of those outstanding tax certificates is to be mailed to the taxpayer under section 197.322(3), Fla. Stat. (2006), with the statement of current taxes due. Taxes are due and payable on November 1st of the year in which they are assessed, or as soon thereafter as the tax collector receives the tax roll. F.A.C. 12D-13.002. If taxes are not paid by April 1st of the year following the year of assessment, they are considered delinquent, but may be paid thereafter, prior to issuance of a tax certificate, with interest at 18% per annum (with a minimum charge of 3%). F.A.C. 12D-13.004.
There is a procedure set forth for tax collectors to correct errors in the collection of taxes, but the payment of taxes is never excused. F.A.C. 12D-13.006(2). This regulation requires that the tax collector, clerk of court and property appraiser advise each other of errors with respect to the tax rolls. F.A.C. 12D-13.006(3), (4) and (5). There is also a regulatory procedure for correcting tax certificates, once the certificate has been issued. F.A.C. 12D-13.006(10).
The lien of taxes levied pursuant to Florida law becomes a first lien on taxable property as of January 1st each year. F.A.C. 12D-13.011. The lien is created through the sale of the tax certificate, but the certificate may not be foreclosed or enforced except as prescribed by Chapter 197, Florida Statutes. The tax collector is required to advertise in a publication selected by the board of county commissioners, once each week for three consecutive weeks, a list of properties on which tax certificates will be sold to pay delinquent taxes, including the date of the tax certificate sale and other information relating to the sale. F.A.C. 12D-13.036.
The face amount of the tax certificate sold by the tax collector includes delinquent taxes, interest accruing between the date of delinquency and the date of the sale calculated at a monthly rate of 18% per annum and costs and other charges including advertising charges. F.A.C. 12D-13.045(3). The bidding for the certificate starts at 18% per year (on the face amount). F.A.C. 12D-13.045(4). The certificate is issued to the party who will demand the lowest rate of interest on the amount due. F.A.C. 12D-13.045(5). Redemption is accomplished when the legal title holder of the property, or someone acting on behalf of the legal title holder, pays the amount required to cancel and invalid the tax certificate, or a portion thereof.
If a tax certificate is not redeemed, the holder of the certificate may apply to the tax collector for issuance of a tax deed at any time after two years have elapsed since April 1st of the year of issuance of the tax certificate and before expiration of seven years of the date of issuance. F.A.C. 12D-13.060. Upon receipt of a tax deed application, the tax collector is responsible for the preparation of an abstract or title search, referred to as the tax collector's report. This report provides the list of persons to be notified of the sale under section 197.522, Fla. Stat. (2006) F.A.C. 12D-13.061 sets forth the minimum standards for preparation of the abstract or title search used for the tax collector's report. The report is to include the names and addresses of legal title holders of record and the owner's address as it appears on the record of conveyance. F.A.C. 12D-13.060(4)(c)1. There are also a number of others who must receive notice, including lien holders, mortgagees, vendees under contract for deed, persons appearing on the property appraiser's assessment roll, etc. If no address is shown on the record of conveyance, the report should indicate the absence of this information. The report must also include persons to whom the property was last assessed on the tax roll and their addresses. F.A.C. 12D-13.060(7). This is in accord with the section 197.502, Fla. Stat. (2006) notice requirements.
Once the tax collector's report is prepared, that office prepares a Notice of Application for Tax Deed (Fla. Dept. of Revenue Form DR-513) and submits the tax deed application and the tax collector's report to the clerk of court. F.A.C. 12D-13.060(4). The DR-513 also lists all tax certificates outstanding on the land described in the tax deed application, the face amount of the certificate, interest earned on the certificate and the tax collector's costs and fees. F.A.C. 12D-13.060(4)(a). The clerk of court makes an additional interest calculation through the day of the last month in which the tax deed sale is to be held. F.A.C. 12D-13.060(4)(b)2.
Function of clerk of court.
Following receipt of a DR-513, the clerk notices a sale and publishes the notice of sale once a week for four consecutive weeks. F.A.C. 12D-13.062. The notice of sale contains the statutory warnings that back taxes are due, the property may be sold at a tax deed sale, and includes an address and phone number for the Clerk of Court as set forth in section 197.522(2)(a), Fla. Stat. (2006) and is mailed to the property owner and to others listed in the tax collector's statement.
Further, Florida Administrative Code Section 12D-13.062 also requires the clerk to deliver a notice of sale to a sheriff, for physical delivery to the property owner, as follows (set forth in F.A.C. 12D-13.062(2)):
At least 30 days prior to the date of sale, the clerk shall prepare a notice containing the warnings required by Section 197.522(2)(a), F.S., for owners of the property to be sold and by Section 197.522(2)(b), F.S., for owners of contiguous property listed in the tax collector's statement pursuant to Section 197.502(4)(h), F.S., and:
1. If the owner of the property to be sold resides in the same county in which the property is located, deliver an original and sufficient copies of the notice to the sheriff of that county;
2. If the owner resides in Florida outside the county where the land is located, deliver an original and sufficient copies of the notice to the sheriff of the county in which the property is located, unless the property is assessed as non-agricultural acreage or vacant land;
3. If the owner resides outside the State of Florida, the clerk shall send notice to the sheriff of the county where the property is located, unless the property is assessed as non-agricultural acreage or vacant land;
4. For the owners of the property contiguous to the property to be sold, deliver an original and sufficient copy of the notice described in Section 197.522(2)(b), F.S., to the sheriff of the county in which the contiguous property lies.
The sheriff is to effect service of the notice at least 20 days prior to the date of the sale. In addition, the sheriff of the county in which the property is located "shall post the notice in a conspicuous place on the property." F.A.C. 12D-13.062(2)(b).
The clerk is further required to mail notices, by certified mail, to the owner as listed in the tax collector's report at least twenty days prior to the date of sale, which notice is to include the section 197.522 warning. The clerk also prepares an affidavit of delivery of the notice and records the same in the public records of the county. The property may be redeemed and the tax deed sale avoided prior to the tax deed sale. Upon sale of the property, the Clerk issues a tax deed to a successful bidder.